Chart of the week: China is vulnerable to trade wars

No end in sight.

Trade wars haven’t been know to drive economic prosperity, a lesson from history China and the US are revisiting today. China sends almost 20% of its exports across the Pacific which means it’s going to feel the pinch if that slows. But if the trade war escalates further, our analysis suggests that Beijing is likely to do more monetary and fiscal stimulus, and so far the economy is holding up okay. See our views on this and other topical issues in our latest Quarterly InvestmentUpdate .

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